AIICO Insurance Plc has declared a profit before tax of N1.4 billion in the financial year 2015 as against the N3.1 billion it recorded in 2014, signifying a drop of by N1. 6 billion or by 53.4 per cent.
This was made known in the company’s 2015 full year audited financials posted on its website.
The company held its 46th Annual General Meeting last week in Lagos.
The company also saw a drop in its gross premium income as it records N9.94 billion in the year under review as against the N20.55 billion it recorded in 2014.
The report showed that the book value of equity/shareholders’ funds was N9.4 billion, down by N2 billion or by 18 per cent in 2015.
“This is largely as a result of a change in accounting policy – reclassifying ca. N60 billion of fixed income investments from a cost-based valuation to a market-based one thereby valuing at carrying values which are marked-to-market,” the report read.
“This was to eliminate the identified accounting mismatch and align the risks and management of the assets and liabilities for annuity.
“Total assets as at December 31, 2015 is N80 billion, up by N22 billion, which grew significantly as the company reinvested policyholder’s funds and ensured adequate matching of assets to the duration of the liabilities, in particular guaranteed annuities, with estimated life expectancy of 20 years after retirement,” it stated.
